Online stock trading is a convenient and inexpensive way for consumers to invest their money. Much of the success of online stock trading has as much to do with the brokers that investors choose along with the stocks they buy. There are many factors to consider when choosing a broker for online stock trading. These include account minimums and fees, commissions, products offered, technology, promotions, customer service, and educational tools. Fortunately, there are many brokers for online stock trading offering investors a range of advantages. The best three brokers for online stock trading include Ally, Merrill Edge, and E-Trade. Read more to find out what you need to know about online stock trading.
Fortunately, it takes very little money to start investing in the stock market, especially if the broker you choose have no account minimums. Once the account is opened, all it takes to start online stock trading is enough money to cover the stock itself and the trading commission.
If you don’t have a lot of money, it might feel like it will take a long time to diversify your stock. Instead, try exchange-traded funds (ETF). These are small mutual funds that are bought and sold just like individual stocks, and many of them contain dozens or even hundreds of stocks.
Each broker charges commissions per trade. Ally charges $4.95 per trade, and also offer volume discounts. Merrill Edge and E-Trade both charge $6.95 per trade.
Brokers require a minimum amount of money in investors’ accounts before online stock trading can begin. These minimums can range from nothing to $10,000, depending on the brokers. Ally and Merrill Edge both require no minimums, while E-Trade requires a $500 minimum.
There are often promotions offered intended to attract investors. Ally is offering a $200 cash bonus with a qualifying deposit. Merrill Edge is offering a $100 to $600 cash bonus with a qualifying deposit. E-Trade is offering 60 days of commission-free trades with a qualifying deposit.
In addition to commissions charged per trade, there may be associated fees. These can include annual fees, inactivity fees, money charged for broker-assisted trades, paper statement fees, and more. Investors need to choose a broker who charges a minimal amount of fees and opt out of services that cost extra.
These online stock trading brokers offer educational tools through their websites, including video tutorials and articles. Investors can also talk with trading professionals, but this might cost a little money.
While each of these brokers are comprehensively good for online stock trading, they do have specialties. Ally is best for low costs associated with online stock trading. Merrill Edge has the best research and educational tools. E-Trade has the best selection of investments.